With the deadline of UCITS V implementation coming next month, investors and asset managers should be aware of the characteristics of the increasingly demanded product of UCITS. The idea of the so-called “Newcits” was introduced for better investor protection after the financial crisis. UCITS III in 2001 introduced the use of derivative instruments such as options and futures and focuses more on the product side, while UCITS IV focuses more on the fund management. Regulators continuously seek for better protection of investors’ capital by imposing regulations regarding liquidity, short-selling, leverage, reporting, concentration risks and investable asset classes. UCITS V will not revolutionize the UCITS directive but focuses on improving the existing UCITS IV by harmonizing the depositary functions, putting limits on remuneration packages and governance.

Stone Mountain Capital LTD is registered (FRN: 729609) as Appointed Representative with the Financial Conduct Authority (‘FCA’) in the United Kingdom.

The website content is neither an offer to sell nor a solicitation of an offer to buy an interest in any investment or advisory service by Stone Mountain Capital LTD and should be read with the Disclaimer.